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The Average LA Home is Totally Unaffordable at Average Income

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Shocker: Though the Southern California housing market isn't exactly booming anymore, it remains insanely high-priced. Have you readjusted your monocles? A new study out by the National Association of Realtors, via the LA Times, reveals that Los Angeles is the ninth most expensive housing market for buyers in the US. Meanwhile, Orange County is the third most expensive and San Diego is the fifth. The NAR created the ranking by looking at the median sale price for houses sold in the second quarter of 2014. LA's median was $420,300; the OC came in at $691,900. At those numbers, houses are not exactly within reach for the average household in either county. To buy one of a median-priced home, an LA household would have to have an income of at least $79,679 to qualify for a mortgage (assuming a 20 percent down payment); an OC household would need to be bringing in $131,168. Who makes that much? Not the average household in those counties, that's for sure. In LA, the average household makes around $56,241 a year; in the OC, it's $75,566.
· Orange County is 3rd-priciest housing market in U.S.; L.A. is 9th [LAT]
· State O' the Market archives [Curbed LA]